Mourners attend the funeral of fighters with Iraq’s Popular Mobilization Forces who were killed in an airstrike, in Baghdad, Iraq, April 8, 2026. (Credit: Thaier al-Sudani/Reuters)
U.S. President Donald Trump's administration halted U.S. dollar shipments to Iraq and froze security cooperation programs with its military, as it presses Baghdad to dismantle Iranian-backed militias operating in the country, the Wall Street Journal reported on Tuesday, citing Iraqi and U.S. officials.
U.S. Treasury Department officials recently blocked the delivery of Iraq's proceeds in oil sales, nearly $500 million in U.S. banknotes, from accounts at the Federal Reserve Bank of New York, the Journal said.
Reuters could not immediately verify the report. The U.S. Treasury Department and the Federal Reserve did not immediately respond to a request for comment.
Washington also informed Baghdad that it is suspending funding for some counter-terrorism and military training programs until militia attacks end and Iraqi authorities take steps to dismantle armed groups, the report added.
The United States earlier this month summoned Iraq’s ambassador after a drone strike on a major U.S. diplomatic facility in Baghdad, following a series of drone attacks that Washington blamed on Iran-aligned “terrorist militias."
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